Tesco has faltered, while other retailers have grown market share, said Kantar

Tesco has faltered, while other retailers have grown market share, said Kantar

UK grocery retailer Tesco dropped market share, while Iceland put in its strongest performance in a decade, according to the latest data from Kantar Wordpanel.

Figures for the 12 weeks ending 22 January, released today (31 January), show the supermarket giant saw its share of the grocery market dip below 30%.

Meanwhile, frozen food specialist Iceland's market share hit 2.1% as shoppers continue to seek value for money, according to Kantar. A majority stake in the company is currently being auctioned by two failed Icelandic banks.

Edward Garner, director at Kantar, said: "With bids for the chain closing today, these figures are promising for potential buyers and show the importance of a good value-for-money message in today's grocery market."

He added there were "mixed fortunes" among the big four supermarkets this month. While pressure on Tesco mounted, Asda lifted its share from 16.9% a year ago to 17.5% now, while Sainsbury's has also grown its share to 16.7%. Elsewhere, discounters Aldi and Lidl continue their strong run, both increasing their shares to 3.5% and 2.5% respectively.

Kantar also stated that grocery inflation stands at 5.7% for the period, a drop from the 6.2% high it reported for November last year. It expects to see further decreases during 2012.